India's Outward Foreign Direct Investment
As an outcome of liberalization policies, India's outward foreign direct investment witnessed an unprecedented rise in recent period. India's overseas investments that began with Information Technology and related services sectotrs has over the years spread to wider areas like manufacturing and financial and non-financial areas. According to a Reserve Bank of India report, number of proposals approved for outward FDI from India in joint ventures and WOSs increased from 1214 in 2003-04 to 1817 in 2006-07. The amount fo approved proposals increased from $ 1466 million in 2003-04 to $ 15060 million in 2006-07.
| APPROVED
PROPOSALS (In
US$ Million) |
|||||
|
|
No. of proposals |
Amount of approved proposals |
|||
Equity |
Loan |
Guarantee |
Total |
||
| 2003-04 |
1214 |
822.40 |
229.90 |
413.83 |
1466.13 |
| 2004-05 |
1281 |
2010.03 |
384.39 |
409.91 |
2804.33 |
| 2005-06 |
1395 |
1887.78 |
629.74 |
337.32 |
2854.84 |
| 2006-07 |
1817 |
11244.96 |
1475.28 |
2339.76 |
15060.00 |
| Apr.-Dec. 2007 |
1595 |
11324.99 |
1331.77 |
5780.50 |
18437.26 |
| Apr.-Dec. 2006 |
1268 |
4594.09 |
1270.70 |
2079.75 |
7944.54 |
| SOURCE: Reserve bank of India report, April 2008 |
|||||
The amount of outward FDI from India on account of JVs/WOSs, according to the RBI report, increased from $ 1495 million in 2003-04 to $ 12880 million in 2006-07. Equity accounted for 90 percent of the total investments and the remaining 10 percent by way of loans in 2006-07. Inflows from India's outward FDI are in the form of dividend, royalty, license fee, brand fee, technical knowhow fee, repayment of loans etc. During 2006-07 total inflows from outward FDI amounted to $ 295 million.
|
ACTUAL OUTFLOWS
(In US$ Million) |
||||
| Year |
Equity* |
Loan |
Guarantee Invoked |
Total |
| 2003-04 |
1234.25 |
260.93 |
- |
1495.18 |
| 2004-05 |
1365.59 |
402.79 |
- |
1768.38 |
| 2005-06 |
3858.46 |
1008.10 |
3.00 |
4869.56 |
| 2006-07 |
11599.01 |
1281.07 |
- |
12880.08 |
| 2007-08 (April-December) |
9096.50 |
1017.72 |
- |
10114.22 |
| 2006-07 (April-December) |
8097.27 |
876.07 |
- |
8973.34 |
|
|
||||
| SOURCE: Reserve Bank of India |
||||
|
INFLOWS FROM
INDIA'S OUTWARD FDI (In US$ Million) |
|||
| Year |
Dividend |
Others@ |
Total |
| 2006-07 |
21.96 |
272.75 |
294.71 |
| 2007-08 (April-December) |
29.41 |
307.68 |
337.09 |
| 2006-07 (April-December) |
20.15 |
274.33 |
294.48 |
| @ Others include dividend, royalty, licence fee, brand fee, technical know-how fee, repayment of loan, etc. |
|||
| Figures are provisional |
|||
|
|
|||
The sectoral pattern of outward FDI is led by manufacturing during first nine months of fiscal 2007-08 with $ 7634 million followed by non-finacial services' $ 1677.71 million and $ 620.48 milliion. Of the total investmemnts 96 percent were of large investments (4 5 million and above). Sectorwise 43 percent were bin manufacturing folowed by non-fimnancfinancial services ( 10 percent) and ytrading ( 4 percent).
|
SECTORAL PATTERN
OF OUTWARD FDI DURING APRIL-DECEMBER 2007 |
||||||||||
| Sector |
Month |
Total Approvals |
||||||||
| April |
May |
June |
July |
Aug. |
Sept. |
Oct. |
Nov. |
Dec |
|
|
| Trading |
54.22 |
28.25 |
46.74 |
40.57 |
- |
24.17 |
114.98 |
311.55 |
- |
620.48 |
| Manufacturing |
149.10 |
549.00 |
4122.00 |
495.40 |
219.52 |
1339.11 |
256.93 |
345.09 |
157.78 |
7634.00 |
| Non Financial Services |
66.79 |
234.20 |
61.20 |
23.63 |
364.91 |
420.61 |
139.50 |
248.07 |
118.78 |
1677.71 |
| Others |
52.47 |
396.90 |
883.30 |
172.60 |
67.20 |
77.67 |
4554.26 |
596.99 |
879.84 |
7681.09 |
| Financial |
- |
- |
- |
- |
- |
- |
7.00 |
25.46 |
- |
32.46 |
| Total |
322.60 |
1208.00 |
5113.00 |
732.20 |
651.63 |
1861.56 |
5072.67 |
1527.16 |
1156.40 |
17645.74 |
| Note |
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| SOURCE : Reserve Bank of India |
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Pages: 1
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I 4 I
5 I
6 I
7 I
8 Next
June
2008
